The Australian Securities and Investments Commission's (ASIC) decision to launch legal action against individuals and companies involved in the Westpoint collapse could have wide-ranging implications for professional indemnity (PI) insurers, according to a legal expert.

Blake Dawson partner Mark Radford says PI insurers will look closely at the progress of ASIC's action to recover a total of $308 million.

"PI insurers are likely to be more wary when renewing business and obtaining more details in terms of their approved product list," he told Sunrise Exchange News.

ASIC has launched civil proceedings against eight Westpoint mezzanine providers for claims amounting to $245 million, with five former directors named in the action as personally liable, and five licensed financial planners, with potential claims of $63.2 million.

And ASIC's decision to commence proceedings against individuals could lead to claims on directors' and officers' insurance.

The case is further complicated by a dispute over the director status of two of the five named officers, as defined by the Corporations Act. ASIC moved this week to extend asset preservation orders against one of these parties, Graeme Rundle.

And Slater & Gordon has a class action pending against two of the financial planning firms. Mark Walter, National Practice Group Leader - Commercial Litigation, says the law firm is "looking forward to working with ASIC".

Mr Radford says investors may have to choose between joining the public or private actions. "You'd wonder if they could combine the actions," he said.

He says ASIC's decision to launch civil proceedings involves an easier burden of proof. "ASIC's out to look after investors first."

ASIC says 85% of Westpoint's 4300 investors could benefit from the action.

But Financial Planning Association CEO Jo-Anne Bloch says unlicensed financial planners have escaped scrutiny.

"It seems only those covered by professional indemnity have been pursued, yet there have been a number of unlicensed advisers that have sold Westpoint investments and yet have managed to escape the net," she said.

Mr Radford says ASIC's action doesn't rule out the possibility of further civil or criminal proceedings.

ASIC has so far banned five financial advisers, and is considering another 13 banning briefs, over the Westpoint issue.